Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PA9-4 Recording Transactions and Adjustments for Tangible and Intangible Assets [LO 9-1, LO 9-2, LO 9-3, LO 9-4, LO 9-5, LO 9-6) The following transactions

image text in transcribed
image text in transcribed
PA9-4 Recording Transactions and Adjustments for Tangible and Intangible Assets [LO 9-1, LO 9-2, LO 9-3, LO 9-4, LO 9-5, LO 9-6) The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. nes 2018 January 2 Pald $102,000 cash te purchase storage shed components. January 3 paid $4,000 cash to have the storage shed erected. The storage shed has an estimated 11 fe of 10 years and a residual value of $7,000. April 1 Paid $40,000 cash to purchase a pickup truck for use in the business. The truck has an estimated useful life of five years and a residual value of $5,000. May 13 Paid $600 cash for minor repairs to the pickup truck's upholstery. July 1 Paid $13,000 cash to parchase patent rights on a new paper bag manufacturing process. The patent is estimated to have remaining useful life of five years. December 31 Hecorded depreciation and mortisation on the pickup truck, storage shed, and patent. 2019 June 30 sold the plekup truck for $41,000 cash. Record the depreciation on the truck prior to recording its December 31 Recorded depreciation on the storage she also determined that the patent va impaired and wrote of its remaining book value the vote down the book value to rero) Required: Prepare the journal entries required on each of the above dates of no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round Intermediate calculations.) View transaction View journalty work No General Journal 1 Date January 02, 2018 Buliding Cash Credit Debit 100.000 102.000 2 January 09, 2018 Building Car 4.000 4.000 3 An 01.2018 Equipment Cash 40.000 48.000 5 July 01, 2018 Patent 13,000 Cash 13.000 6 December 31. 2018 Depreciation Expense Amortization Expense Accumulated Depreciation-Equipment Accumulated Depreciation-Buildings Patent 7 June 30, 2019 Depreciation Expense Accumulated Depreciation--Equipment 8 June 30, 2019 41.000 Cash Accumulated Depreciation Equipment Gain on Disposal Equipment 41,000 9 December 31 2019 Depreciation Expense Accumulated Depreciation Buildings 10 December 31, 2019 Impairment Loss Accumulated Amortization 15 December 31, 2019 Depreciation Expense Accumulated Depreciation Buildings 12 December 31 2010 Impairment Loss Patent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Valuation For Accountants A Short Course Based On IFRS

Authors: Stephen Lynn

1st Edition

9811503567, 9789811503566

More Books

Students also viewed these Accounting questions